By: Armbrister, Ratliff S.B. No. 1232
A BILL TO BE ENTITLED
AN ACT
1-1 relating to a motor vehicle self-insurance program for volunteer
1-2 fire departments.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-5 amended by adding Article 21.61 to read as follows:
1-6 Art. 21.61. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE
1-7 SELF-INSURANCE PROGRAM
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Fund" means the volunteer fire department
1-10 self-insurance fund established under Section 5 of this article.
1-11 (2) "Program" means the volunteer fire department
1-12 motor vehicle self-insurance program established under this
1-13 article.
1-14 (3) "Service" means the Texas Forest Service of The
1-15 Texas A&M University System.
1-16 (4) "Volunteer fire department" means a fire
1-17 department operated by its members that is operated on a
1-18 not-for-profit basis, including a department that is exempt from
1-19 federal income tax under Section 501(a) of the Internal Revenue
1-20 Code of 1986 (26 U.S.C. Section 501(a)) by being listed as an
1-21 exempt organization in Section 501(c)(3) of that code (26 U.S.C.
1-22 Section 501(c)(3)).
1-23 Sec. 2. ADMINISTRATION OF PROGRAM. (a) The Texas Forest
1-24 Service shall administer the volunteer fire department motor
2-1 vehicle self-insurance program established under this article.
2-2 (b) The service may employ staff to administer the program.
2-3 Sec. 3. SELF-INSURANCE PROGRAM. (a) The service shall
2-4 establish the program to:
2-5 (1) identify and evaluate risks arising from the use
2-6 of motor vehicles by volunteer fire departments;
2-7 (2) maintain a loss-prevention and loss-control
2-8 program to reduce risks arising from the use of motor vehicles by
2-9 volunteer fire departments;
2-10 (3) consolidate and administer volunteer fire
2-11 department risk management and self-insurance programs; and
2-12 (4) provide motor vehicle self-insurance coverage in
2-13 accordance with Section 4 of this article.
2-14 (b) The director of the service may adopt rules to implement
2-15 and administer the program.
2-16 Sec. 4. SELF-INSURANCE COVERAGE. (a) The program shall
2-17 establish a self-insurance pool to provide coverage for motor
2-18 vehicles used for fire fighting by a volunteer fire department.
2-19 (b) The coverage may indemnify an official, employee,
2-20 member, or volunteer of a volunteer fire department for liability
2-21 arising from the use of a covered motor vehicle in the performance
2-22 of the fire fighting duties of the official, employee, member, or
2-23 volunteer. The coverage must be subject to a maximum limit of
2-24 $100,000 for damages for bodily injury, death, or property damage
2-25 arising out of a single occurrence.
2-26 (c) The director of the service may establish:
2-27 (1) eligibility requirements for participation in
3-1 coverage under this section; and
3-2 (2) equipment and safety standards for the motor
3-3 vehicle to be covered under this section.
3-4 (d) To participate in coverage provided under this section,
3-5 a volunteer fire department must submit a written request to the
3-6 program. The director of the program shall approve the request if
3-7 each motor vehicle to be covered meets the eligibility requirements
3-8 and equipment and safety standards established under Subsection (c)
3-9 of this section.
3-10 Sec. 5. FUND. (a) The volunteer fire department
3-11 self-insurance fund is an account in the general revenue fund.
3-12 (b) The fund is composed of:
3-13 (1) money collected under Section 6 of this article;
3-14 and
3-15 (2) interest accruing on money in the fund.
3-16 (c) Money in the fund may be expended in accordance with
3-17 legislative appropriation only for:
3-18 (1) administration of this article, including the
3-19 salaries and expenses of staff for the program and the fund; or
3-20 (2) funding self-insurance under the program.
3-21 (d) Self-insurance coverage provided under Section 4 of this
3-22 article may be funded only from money available from the fund.
3-23 (e) Coverage limits of self-insurance provided under Section
3-24 4 of this article must be based on the liquidity of the fund after
3-25 deduction of the cost of administration of this article.
3-26 (f) The state's liability for a loss covered by
3-27 self-insurance provided under this article is limited to the assets
4-1 of the fund, and the state is not otherwise liable for that loss.
4-2 Sec. 6. SELF-INSURANCE FEE. (a) The service may levy and
4-3 collect a reasonable fee from participating volunteer fire
4-4 departments to provide self-insurance coverage under this article.
4-5 In establishing the amount of the fee, the service shall consider
4-6 the amount that could be charged to the volunteer fire department
4-7 for similar insurance coverage provided to the department in
4-8 accordance with this code.
4-9 (b) Fees collected under this section shall be deposited to
4-10 the credit of the fund.
4-11 Sec. 7. REPRESENTATION OF INSURED. (a) The service may
4-12 employ an attorney to represent a volunteer fire department or an
4-13 official, employee, member, or volunteer of a volunteer fire
4-14 department in a liability action for which insurance coverage is
4-15 provided under this article.
4-16 (b) The attorney general may not provide the services
4-17 described by Subsection (a) of this section.
4-18 SECTION 2. (a) This Act takes effect September 1, 1995.
4-19 (b) The volunteer fire department motor vehicle
4-20 self-insurance program established under Section 3, Article 21.61,
4-21 Insurance Code, as added by this Act, may not provide insurance
4-22 coverage under Section 4 of that article before January 1, 1996.
4-23 (c) Notwithstanding Section 5, Article 21.61, Insurance
4-24 Code, as added by this Act, the volunteer fire department
4-25 self-insurance fund established under that section may include
4-26 amounts appropriated to the fund until September 1, 1998. The
4-27 initial self-insurance fee set under Section 6, Article 21.61, as
5-1 added by this Act, must be established in an amount sufficient to
5-2 refund to the general revenue fund any appropriation made to the
5-3 volunteer fire department self-insurance fund. The refund
5-4 contemplated by this subsection shall be made not later than
5-5 September 1, 1998.
5-6 SECTION 3. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.